Multiple Choice Question On May 14, X-Mart purchased $500 of merchandise with terms of 3/15,n/40. If payment is made on May 28, calculate the purchase discount that may be taken by X-Mart. $15 $70 $75 $20

$15

Explanation:

Terms of 3/15,n/40 means that there is a discount of 3% is available id if the the payment is made within 15 days after sale and net credit period is 40 days. As payment is made within the discount period of 15 days, so the discount will be given on the due amount.

Sales amount = $500

Discount = $500 x 3% = $15

1) Which of the following terms refers to all forms of pay or rewards going to employees and

arising from their employment?

A) salary

B) employee benefits

C) wage reimbursement

D) employee compensation

D

Explanation: D) Employee compensation refers to all forms of pay going to employees and

arising from their employment. It has two main components, direct financial payments (wages,

salaries, incentives, commissions, and bonuses) and indirect financial payments (financial

benefits like employer-paid insurance and vacations).

Difficulty: Easy

Chapter: 11

Objective: 1

AACSB: Analytical Thinking

Learning Outcome: 11.1 List the basic factors determining pay rates.

2) Which of the following is NOT a type of direct financial payment?

A) wages

B) insurance

C) incentives

D) commissions

B

Explanation: B) Employee compensation refers to all forms of pay going to employees and

arising from their employment. It has two main components, direct financial payments (wages,

salaries, incentives, commissions, and bonuses) and indirect financial payments (financial

benefits like employer-paid insurance and vacations).

Difficulty: Easy

Chapter: 11

Objective: 1

AACSB: Analytical Thinking

Learning Outcome: 11.1 List the basic factors determining pay

Explanation: